TORONTO, ON, May 14, 2003 - ClaringtonFunds Inc. today announced
the introduction of the Clarington Diversified Income Fund,
providing an innovative new solution for investors seeking
conservative, attractive income. As a complement to Clarington's
existing income funds, the new Diversified Income Fund will invest
in a wide range of income-producing asset classes. The Fund will
invest primarily in corporate bonds, high-yield bonds, income
trusts and dividend-paying equities. The Fund may also make
allocations to convertible and real return bonds, structured notes
and covered calls.
KBSH Capital Management Inc. of Toronto, one of Canada's most
respected institutional money managers, will manage the fund.
"Income is an important focus of many investor's portfolios and
there are many opportunities to earn conservative, attractive
income beyond traditional asset classes. It was with this objective
that we designed the Clarington Diversified Income Fund," says Eric
Frape, Clarington's Vice President of Product Management. "The Fund
will complement traditional income portfolios by providing
investors with a greater diversity of income-producing securities
and an adaptable asset mix as the investment environment
changes."
KBSH has 23 years of broad experience assessing and valuing
investment opportunities for their clients through both equity and
fixed-income portfolios. Of the $7 billion KBSH currently manages,
$2.5 billion is in fixed-income securities. "We believe that this
unique combination of corporate bonds, high-yield bonds, income
trusts and dividend-paying equities will provide investors with a
flexible, well diversified portfolio that will deliver consistent
distributions over many years and all stages of the business
cycle," says Peter Pennal, President of KBSH Capital
Management.
Clarington Diversified Income Fund may be suitable for investors
with a medium tolerance for risk and who are seeking a conservative
level of monthly income.
The Fund is designed to provide a monthly distribution of five
cents per unit and will be launched with a net asset value of $10
per unit. Any additional income generated in the portfolio will be
distributed annually each December. It is expected that a portion
of the distribution will be made up of capital gains, interest,
dividends and/or a return of capital, which would provide greater
tax efficiency to investors.
ClaringtonFunds Inc., founded in 1995, currently has $2.8
billion in assets in 34 mutual funds, with offices in Vancouver,
Calgary, Toronto, Ottawa and Montreal. All of Clarington's mutual
funds are sub-advised by well-known Canadian and international
investment managers, including KBSH Capital Management, founded in
1980, with offices in Toronto, Vancouver, Montreal and Halifax.